Transport for London Pension Adds To Hedge Funds

Dec 11 2012 | 9:10am ET

London's public transit employees are more than doubling the amount of their pension invested with hedge funds.

Transport for London's pension is boosting its alternatives allocation to 25%, from 13% in March. Just a year ago, the scheme, which faces a £1.2 billion shortfall, had just over 10% of its assets in hedge funds.

"Trustees have decided to increase the exposure to alternatives, including hedge funds, to improve the fund's risk-adjusted returns," investment officer Padmesh Shukla said.

The beneficiaries of the move are Arrowgrass Capital Partners, Bridgewater Associates and Och-Ziff Capital Management, Reuters reports. The TfL pension already invests with Bridgewater and is boosting its allocation to the firm, while it is in the final stages of investing with the other two.

The pension also currently invests in Davidson Kempner Partners, Gresham Investment Management and BlueCrest Capital Management, although it recently cut its allocation to the latter.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?